Categories: Blockchain

Here’s Why We Need to Look Beyond Proof-of-Work (PoW)

The reports of Ethereum Classic getting hacked took the entire crypto world by storm. Since Ethereum Classic is employing the famous Proof-of-Work (PoW) consensus algorithm at its core, questions have begun to arise regarding the safety of other PoW employing chains. Not going far beyond, the world’s leading cryptocurrency in terms of market capitalization, bitcoin, is also employing PoW underneath. Does this mean we need to move on from PoW? The answer, probably yes, not just because of the hacking issue, but also due to the energy consumption problem.

The bitcoin network across the globe is using more power right now than the country of Denmark. Miners use heavy-duty hardware in order to perform mining and get rewards. A large amount of electricity is required to run these mining nodes continuously. Besides, the coal-based energy used to run these nodes results in further pollution of our environment. Global warming, hence, might be directly getting worsened as a result of the electricity used for mining. Energy consumption is becoming a serious issue as more and more people are entering the bitcoin ecosystem.

BlockPublisher recently got in touch with Lizzie Parmenter, consultant for Pelicoin, as she shared her views regarding Proof-of-Work. Talking about the question regarding PoW being flawed, she said:

Lizzie: “Proof of Work is energy inefficient, and continuing to rely on this proof could result in friction and centralization down the line.

Proof of Contribution may be a preferable alternative. It does not rely on mining, and instead reaches consensus by gauging useful contributions from users that support the network. Network attacks are prevented due to the astronomical costs of overloading the system.”

As suggested by Lizzie, PoW might result in the problem of centralization in a decentralized network. With more mining power, the chances of solving the cryptographic puzzles in the network increase and as a result, more rewards can be obtained by an entity. This partly integrates the issue of centralization in the network. Besides, in order to run heavy-duty hardware continuously, a lot of energy is needed.

It probably is about time we start to look forward to different alternatives in order to maintain a blockchain network and reach consensus. It’s about time we choose a more eco-friendly and fair network maintenance algorithm instead of PoW.

SEE ALSO: PoW Will Struggle to Grow to Broader Adoption, Claims Michael Zochowski

Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

View Comments

Share
Published by
Ahsan Khalid

Recent Posts

Iran Legalizes Bitcoin and Crypto Mining But There’s One Challenge Ahead

Iran, which was considered by many as one of the cheapest crypto mining country has now approved crypto mining as…

July 23, 2019 2:39 pm

Crypto Dark Side: $13 Million Law Suite Filed Against Ethereum Co-founder

Joseph Lubin, a very well known personality in the crypto space, the founder of ConsenSys and co-founder of Ethereum, is…

July 23, 2019 12:38 pm

Desert Safari Dubai – Here’s Why You Need to Try it Out

If you are a traveler with a strong penchant for trying out new and adventurous things, Desert Safari Dubai is…

July 23, 2019 9:38 am

$4.57 Million Crypto Lunch: Justin Sun and Buffett’s Lunch Extravaganza

One of the most highly anticipated lunches in crypto history, featuring the founder of Tron, Justin Sun and the renowned…

July 22, 2019 9:13 pm

Bitcoin & Cryptos are Adding Multipolarity in Global Currency Competition

The U.S. dollar has remained to be the leading currency standard across the globe for decades now. Other fiat currencies…

July 22, 2019 8:16 pm

Bitcoin Frequently Used in Money Laundering – Will Face Severe U.S. Regulations

Exhibiting volatile fluctuations in the crypto market, bitcoin, in addition to the crypto enthusiasts and investors, has been capturing the…

July 21, 2019 8:18 pm